Cash Shortage Causes High Demand for Сrypto in Cuba

Cuba has stopped receiving aid from the South American country Venezuela amid the pandemic, which has created a food shortage in the country. In order to lessen the impact of the economic turmoil, a number of Cubans are resorting to bitcoin and other cryptocurrencies. 

In the midst of the COVID-19 pandemic, Cubans have also been seeing a shortage of “mules.” “Mules,” otherwise known as “Mulas,” are not delivering much-needed goods and cash to the citizens. Mules account for close to half of the cash remittances in the socialist country. 

Many Cubans are evading the US sanctions by flocking to cryptocurrency, in order to shop online and send funds. There is also a popular Telegram channel with thousands of Cubans called “Cubacripto,” where they gather to trade or discuss cryptocurrencies. A number of reports have suggested that many Cubans have been seeking out cryptocurrency solutions over the last two years.

Several other countries, including Venezuela and North Korea, have also been accused of using crypto to evade the sanctions put on by the United States.